Whether A Remortgage Or Secured Loan Is More Suitable Depends On Several Factors.
If a homeowner wants to obtain finance for a number of purposes there are two real options of doing this, and these two ways are either by means of a secured loan or a remortgage.
Both remortgages and secured loans are secured kinds of loans and must be secured on property, and as such only homeowners can apply. These two loans are the same in that they can be used for almost any purpose providing that it is legal.
There are various considerations to be taken into account when deciding that you require funds for whatever reason.
Homeowners are tied into a mortgage for several years after the start date of the mortgage and during these years they are required to pay an early repayment penalty if they pay off the mortgage early and this can amount to thousands of pounds.
This can cost the homeowner thousands of pounds in charges as the penalty can be from 2% to 5% of the outstanding mortgage balance. If you have a mortgage of say 300,000, the penalty would be from 6,000 to as much as 15,000. Therefore to remortgage in such circumstances would be an act of madness, and a secured loan would be the road to take.
If the additional finance is required in a hurry, yet again the secured loan would be more suitable, as the secured loan can pay out in under three weeks with remortgages taking four weeks or very commonly six weeks to pay out.
On the other hand if speed of payout is not relevant , and there is no tie in period a remortgage could be preferable as remortgages have a lower rate of interest, starting at interest rates of under 2% at present for those with a minimum 60% LTV in their property.
Secured loans at present have interest rates starting at about 9% which is still good, but certainly not as low as the remortgage.
Therefore whether a remortgage or secured loan is better depends on the circumstances of the remortgage or secured loan applicant.
Both remortgages and secured loans are secured kinds of loans and must be secured on property, and as such only homeowners can apply. These two loans are the same in that they can be used for almost any purpose providing that it is legal.
There are various considerations to be taken into account when deciding that you require funds for whatever reason.
Homeowners are tied into a mortgage for several years after the start date of the mortgage and during these years they are required to pay an early repayment penalty if they pay off the mortgage early and this can amount to thousands of pounds.
This can cost the homeowner thousands of pounds in charges as the penalty can be from 2% to 5% of the outstanding mortgage balance. If you have a mortgage of say 300,000, the penalty would be from 6,000 to as much as 15,000. Therefore to remortgage in such circumstances would be an act of madness, and a secured loan would be the road to take.
If the additional finance is required in a hurry, yet again the secured loan would be more suitable, as the secured loan can pay out in under three weeks with remortgages taking four weeks or very commonly six weeks to pay out.
On the other hand if speed of payout is not relevant , and there is no tie in period a remortgage could be preferable as remortgages have a lower rate of interest, starting at interest rates of under 2% at present for those with a minimum 60% LTV in their property.
Secured loans at present have interest rates starting at about 9% which is still good, but certainly not as low as the remortgage.
Therefore whether a remortgage or secured loan is better depends on the circumstances of the remortgage or secured loan applicant.